Which of the following is likely to be a breach of a corporate officer's/director's duty of care?

Question

Quizplus · Accepted Answer

A corporate officer/director has a duty of care to make informed and reasonable decisions for the company. Failing to make a reasonable investigation of relevant facts would be a breach of this duty. Failing to anticipate or predict market changes or competitors may be unfortunate, but it does not necessarily imply a breach of duty. Failing to foresee a rise in interest rates may be relevant depending on the nature of the company's operations, but it is not a clear breach of duty. Therefore, the best choice is B.

Which of the Following Is Likely to Be a Breach